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“Transforming U.S. Manufacturing -- Challenges
and Opportunities”
Thursday, April 9, 2015
Presentation to the NACFAM’s Annual Conference & AMLF Meeting
Phillip Singerman, PhD
Associate Director for Innovation and Industry Services
Acting Director, Manufacturing Extension Partnership
Manufacturing Extension Partnership
Manufacturing Extension Partnership (MEP)
State Based Competitions – 2015
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP
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MEP Strategic Plan
MISSION
To enhance the productivity and technological
performance of U.S. manufacturing.
PROGRAMMATIC STRENGTHS :
•
•
ROLE
MEP ‘s state and regional centers facilitate and
accelerate the transfer of manufacturing
technology in partnership with industry,
universities and educational institutions, state
governments, and NIST and other federal
research laboratories and agencies.
•
•
•
•
National program with at least one
center in every state and Puerto Rico.
Federal/state, public-private partnership
with local flexibility.
Cost share policy that matches federal
investment with state and private sector
investment.
Market driven program that responds to
the needs of private sector
manufacturers.
Leverage partnering expertise as a
strategic advantage.
Local knowledge of, focus on, and
access to manufacturers.
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP
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The MEP Program in Short
Program Started in 1988
At least one center in all 50
states by 1996
National Network
System of Centers serving
Manufacturers in each State.
Partnership Model
Federal, State
and Industry
MEP System Budget
$130 Million Federal Budget
with Cost Share
Requirements for Centers
Global Competitiveness
Program was created by the
1988 Omnibus Trade And
Competitive Act
Emphasis on Performance
Program and center
performance based upon
impact of center services on
client firm
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP
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The National Network
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP
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MEP Client Impacts
Manufacturers
N = 6,088 Surveyed
in FY 2014
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP
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MEP State Competition –
What and Why?
• The program is undergoing a multi-year effort to conduct a full
and open competition for MEP centers older than 10 years.
• Objective is to optimize the federal investment and allocate
additional funds to areas with higher concentration of
manufacturers.
• Will be able to expand the range of services offered with an
emphasis on very small, rural and start-up manufacturers.
• MEP just announced first 10 award recipients of competition in
Feb 2015. Press release can be found
http://nist.gov/mep/awards-support-manufacturing.cfm
• Second round of the competition for 12 states was announced
March 2015. Proposals are due June 1, 2015.
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP
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H.R. 5035 –
NIST Reauthorization Act of 2014
“To reauthorize the National Institute of Standards and
Technology, and for other purposes” passed the House
on July 22, 2014, which provided that if a recipient has
received a Center award for 10 consecutive years, then
the Director shall conduct a competition to select a
Center operator. Current Centers in good standing are
eligible.
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP
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Government Accountability Office (March 2014)
• MEP: “Most Federal Spending Directly Supports Work with
Manufacturers, but Distribution Could Be Improved”
• What GAO Recommends:
– “GAO recommends that Commerce’s spending on cooperative
agreement awards be revised to account for variations across
service areas in demand for program services and in MEP
centers’ cost of providing services. Commerce agreed with
GAO’s recommendation.”
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP
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The Budget for Fiscal Year 2016
• National Institute of Standards and Technology: Industrial
Technology Services/Hollings Manufacturing Extension
Partnership (MEP)…
– “In FY 2013, MEP began a broad based strategic planning process and
developed an operational reform agenda intended to optimize program
effectiveness, enhance administrative efficiency, and provide greater
financial accountability. In FY 2014, MEP initiated a reform of the national
system of MEP Centers through a carefully planned, systematic, multiyear
series of full and open competitions. These re-competition efforts are
ongoing and will continue in FY 2016.”
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP
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Round 1 Competition Funding
MEP Center Location and
Assigned Geographical
Service Area (by State)
Annual Federal Funding
for Each Year of the
Award
Total Federal Funding for
5 Year Award Period
Colorado
$1,668,359
$8,341,795
Connecticut
$1,476,247
$7,381,235
Indiana
$2,758,688
$13,793,440
Michigan
$4,229,175
$21,145,875
New Hampshire
$628,176
$3,140,880
North Carolina
$3,036,183
$15,180,915
Oregon
$1,792,029
$8,960,145
Tennessee
$1,976,348
$9,881,740
Texas
$6,700,881
$33,504,405
Virginia
$1,722,571
$8,612,855
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP
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Round 2 Competition Funding
MEP Center Location and
Assigned Geographical
Service Area (by State)
Annual Federal Funding for
Each Year of the Award
Total Federal Funding for 5
Year Award Period
Alaska
$500,000
$2,500,000
Idaho
$640,236
$3,201,180
Illinois
$5,029,910
$25,149,550
Minnesota
$2,653,649
$13,268,245
New Jersey
$2,814,432
$14,072,160
New York
$5,985,194
$29,925,970
Ohio
$5,246,822
$26,234,110
Oklahoma
$1,309,080
$6,545,400
Utah
$1,147,573
$5,737,865
Washington
$2,534,872
$12,674,360
$500,000
$2,500,000
$3,250,792
$16,253,960
West Virginia
Wisconsin
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP
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MEP State Competition
Funding Opportunity Title: Award Competitions for Hollings Manufacturing
Extension Partnership (MEP) Centers in the States of Alaska, Idaho, Illinois,
Minnesota, New Jersey, New York, Ohio, Oklahoma, Utah, Washington, West
Virginia and Wisconsin
•
NIST invites applications from eligible organizations in connection with
NIST’s funding up to twelve (12) separate MEP cooperative
agreements for the operation of an MEP Center in the designated
States’ service areas and in the funding amounts identified in the
Federal Funding Opportunity - http://nist.gov/mep/ffo-statecompetitions-02.cfm
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP
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Benefits to Competition
• Opportunity to realign MEP center activities with State
economic development strategies
• Resetting of State funding levels to reflect the regional
importance of manufacturing and the national distribution
of manufacturing activities
• Reduction and simplification of reporting requirements
• Five year awards reducing the annual paperwork burden
• Immediate readjustment of the local cost share from 2:1 to
1:1
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP
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Additional Information
• Proposals due June 1, 2015
• Informational webinars for interested applicants
– March 30th 2:00pm; April 13th 2:30pm; April 16th 1:00pm
– Email [email protected] to register for a webinar
– Webinar recordings and presentations will be made
available on the MEP website.
• For more information
http://nist.gov/mep/ffo-state-competitions-02.cfm
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY • MANUFACTURING EXTENSION PARTNERSHIP
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The National Network for
Manufacturing Innovation
Misperception - Productivity on Employment
Rising Productivity does not create employment losses
1965 – 2000 : US Mfg output rises 6x, stable employment
Millions
1
20
1
18
1
16
1
Gray bars
indicate
recessions
14
0
12
0
10
1965 - Jan
0
1975 - Jan
1985 - Jan
1995 - Jan
2005 - Jan
Challenge: US losing leadership
in Advanced Products
U.S. Trade Balance for Advanced Technology Products
+ 40
+ 20
US Trade Balance
Advanced Technology
Products
($ Billion)
0
-20
-40
-60
-80
-100
Products invented here, now made
elsewhere - not driven by labor cost
PCAST: The independent basis of NNMI
President’s Council of Advisors on Science and Technology
PCAST 2011
Recommends Advanced
Manufacturing Initiative as national
innovation policy
PCAST 2012
Recommends Manufacturing
Innovation Institutes to address
key market failure
PCAST 2014
Recommends strong, collaborative
network of Manufacturing
Innovation Institutes
The “Scale-up” Gap or Missing Middle
Common terms
The “valley of death”
The “missing Bell Labs”
The “industrial commons”
Basic R&D
Commercialization
Initial Network Proposed
“Sparking this network
of innovation across the
country, it will create
jobs and will keep
America leading in
manufacturing…"
President Obama, March 9, 2012
• President asks Congress to authorize initial network of up to 15
Manufacturing Innovation Institutes
• President directs Agencies to work together on Pilot Institute,
while designing Institutes with input from Industry and Academia
The Institute Design
Creating the space for Industry & Academia to collaborate
White House Report
NNMI Framework Design
January 2013
Partnership: Industry – Academia – Government
Working better, together to create transformational technologies and build new products and industries23
Institute Major Activities
Applied Research & Demo
projects for
• reducing cost/risk on
commercializing new tech.
• Solving pre-competitive industrial
problems
Tech Integration - Development of
innovative methodologies and
practices for supply chain integration
Institute
Small/Medium Enterprises
• Engagement with small and
medium-sized manufacturing
enterprises (SMEs).
Education, technical skills and Workforce development
Education and training at all levels for workforce development
Building the Network:
Network Status and FY16 Plans
FORTHCOMING FY15
Topic
TBA
Integrated
Photonics
Smart
Mfg.
Flex. Hybrid
Electronics
LIFT
Light/Modern Metals
Detroit, MI
DMDII
Digital Mfg.
Chicago, IL
America Makes
Additive Mfg.
Youngstown, OH
IACMI
Adv. Composites
Knoxville, TN
Full Network Goal: 45 regional hubs
PowerAmerica
Power Electronics
Raleigh, NC
New Institutes Planned for FY16:
Open topic competition – addressing “white
space” between mission agency topics
Selected topic competitions supporting Agency mission
– using agency authorities and budgets
FY17-26 – central fund
proposed for remaining
institutes, via open topic
25
process
The First Pilot Manufacturing Innovation Institute
Additive Manufacturing/3D Printing – Youngstown OH
Prime Awardee: National Center for Defense Manufacturing and Machining
• Initial $30M federal investment matched by $40M
industry, state/local
• Strong leveraging of equipment, existing resources
• Strong business development
• Tiered membership-based model, low cost to small
business and nonprofits
• Now at $50M federal, $60M co-invested
• OVER 100 Participating partners!
2nd Pilot Institute:
Next Generation Power Electronics
$70M public investment, $70M match
Lead: North Carolina State University
Hub Location: Research Triangle Park, NC
• 17 Industry Partners
• 5 Universities
• 3 Labs and Other Organizations
Mission: Develop advanced
manufacturing processes that will enable
large-scale production of wide bandgap
semiconductors, which allow power
electronics components to be smaller,
faster and more efficient than silicon.
Poised to revolutionize the energy
efficiency of power control and
conversion
President Obama
North Carolina State University, January 15, 2014
3rd Pilot Institute:
Digital Manufacturing & Design Innovation
$70M public investment, $105M match
Lead: UI Labs
Hub location: Chicago, Illinois
• 41 Companies
• 23 Universities and Labs
• 9 Other Organizations
Mission: Establish a state-of-the-art
proving ground that links IT tools,
standards, models, sensors, controls,
practices and skills, and transition these
tools to the U.S. design & manufacturing
base for full-scale application
4th Pilot Institute:
Lightweight and Modern Metals
$70M public investment, $70M match
Lead: EWI
Hub location: Detroit, Michigan
Regional location: I-75 Corridor
• 34 Industry Partners
• 9 Universities and Labs
• 17 Other Organizations
Mission: Provide the National focus on
expanding US competitiveness and
innovation , and facilitating the transition
of these capabilities and new technologies
to the industrial base for full-scale
application.
Positioned to expand the US
Industrial base for new products and
technologies for commercial and USG
demands that utilize new, lightweight
high-performing metals
5th Pilot Institute: Selected, Negotiations Underway
Advanced Composites Manufacturing
$70M Federal + > than $180 Non-Federal
investment over five years. This National institute
has 6 State partners CO, IN, KY, MI, OH, TN with
(Over 2:1 cost share) Source: www.iacmi.org
Objective
Develop and demonstrate innovative technologies that will, within
10 years, make game-changing advanced fiber-reinforced polymer
composites. The Institute’s
negotiation is led by University of Tennessee-Knoxville. The full
team includes: 57 Companies, 15 Universities and Laboratories, 14
Other Entities, w/ 36 Consortia Members.
50% Lower cost
Application
Using 75% Less
Energy
And reuse or
recycle >95% of
the material
Institute CFC Cost
Estimated
CFC Ultimate Cost
Reduction Target
Current CFC Cost
Target (2024)
88
(2018)
Vehicles
(Body Structures)
$26-33/kg
>35%
Wind
(Blades)
$26/kg
>25%
$17/kg
~35%
Compressed Gas
Storage (700 bar –
Type IV)
$20-25/kg
>30%
$10-15/kg
~50%
CFC Tensile
Strength
<$11/kg by 2025
0.85GPa (123ksi)
~60%
1.903 GPA
(276ksi)
CFC Stiffness
Production
Volume
Cycle Time
96GPa (14Msi)
100,000 units/yr
<3min cycle time
(carbon)
<5min cycle time
(glass)
134GPa (19.4Msi)
10,000 units/yr (at
>60m length
blades)
2.55 GPa (370ksi) 135 GPa (20Msi)
500,000 units/yr
(carbon fiber)
6th Pilot Institute Funding Opportunity
Integrated Photonics Manufacturing Innovation Institute
More than $100M federal investment
over five years
Objective
Develop and demonstrate innovative technologies for:
• Ultra high-speed transmission of signals for the
internet and telecommunications
• New high-performance information-processing
systems and computing
• Sensors and imaging enabling dramatic medical
advances in diagnostics, treatment, and gene
sequencing
Reprinted with permission from Intel Corp
This Institute will focus on developing
an end-to-end photonics ‘ecosystem’
in the U.S., including domestic foundry
access, integrated design tools,
automated packaging, assembly and
test, and workforce development.
All these developments will
require cross-cutting
disciplines of design,
manufacturing, packaging,
reliability and testing.
The President’s Vision – Network of 45 Institutes
“In my State of the Union Address, I asked
Congress to build on a successful pilot
program and create 15 manufacturing
innovation institutes that connect
businesses, universities, and federal agencies
to turn communities left behind by global
competition into global centers of high-tech
jobs.
“Today, I’m asking Congress to build on the
bipartisan support for this idea and triple
that number to 45 – creating a network of
these hubs and guaranteeing that the next
revolution in manufacturing is ‘Made in
America.’”
AP Photo/Susan Walsh
- July 30, 2013
NNMI Authorized: Revitalize American
Manufacturing & Innovation Act
118 bipartisan RAMI Bill Sponsors
Rep. Tom Reed
R NY-23
Rep. Joe Kennedy
D MA-4
September 15, 2014 –
Passed House
100 Cosponsors (51D, 49R)
Sen. Sherrod Brown Sen. Roy Blunt
R Missouri
D Ohio
December 11, 2014 –
Passed Senate with 2015
Appropriations
18 Cosponsors (10D, 7R, 1I)
December 16, 2014 –
Signed By President Obama
Bipartisan Momentum Supporting NNMI Passage
RAMI and Commerce/NIST
Call to Action: RAMI calls upon the U.S. Secretary of
Commerce and NIST to establish:
1. The “Network for Manufacturing Innovation Program”
(Network function) - to convene and support a network of
Institutes
2. New “Centers for Manufacturing Innovation” (Institutes) using an open topic, open competition process
3. The National Program Office at NIST - to oversee and carry
out the program (coordination, network support, and
reporting)
MEP and NNMI IMIs
 Revitalize American Manufacturing and Innovation Act of
2014 / Consolidated and Further Continuing Appropriations
Act, 2015, pg 241:
 “The Secretary shall ensure that the National Program
Office incorporates the Hollings Manufacturing Extension
Partnership into Program planning to ensure that the
results of the Program reach small and medium-sized
entities.”
 AMP 2.0 Report called for major MEP role, including:
 Support for MEP as an intermediary to help small-to-midsize manufacturers
leverage manufacturing technologies; & to assist small-to-midsize
manufacturers with market entry support and scale-up
 Support to ensure that the MEP becomes a major “tool in the NNMI
toolbox”
U.S. DEPARTMENT OF COMMERCE • NATIONAL INSTITUTE OF STANDARDS AND
35
NNMI FY 2016 Budget Request
 Continues operations for previously funded institutes.
 Through FY 2015, funding was provided to DOE and DOD to initiate nine
institutes.
 Requests over $350 million for seven new institutes.
 Funds are requested in the discretionary budgets of DOD (1), DOE (2), USDA
(2), and DOC (2).
 Includes a mandatory proposal to build out the full Network of 45
institutes over ten years
 $1.9B mandatory request with spending beginning in FY2017
 For DOC specifically, the Budget proposes $150M for two NNMI
Institutes on industry-proposed technologies and NNMI Network
coordination
NIST FY16 Plans
 Conduct open competitions for two DOC-funded
institutes on industry-proposed topics ($140M)
 To be awarded in CY 2016 through cooperative
agreements
 Two institutes each with $70M in federal funding
matched by $70M or more in private funding
 Winning public-private consortia would bring together
leading manufacturers, universities, and workforce
non-profits
 Technology topics chosen by industry
 Support the Network of Institutes ($10M)
 Working with DOD, DOE, NASA, and NSF, convene and
support the network of institutes to ensure sharing of
best practices
 Facilitate stakeholder access nationwide across
institutes
 Create long-term public-private governance structure
and reporting mechanisms
Transform
innovative
technology into
manufacturing
capability
NNMI Hill Day September 18, 2014
Industry-proposed Institutes at NIST
•
NIST institutes can address manufacturing “white space” technologies
proposed by industry that cannot currently be covered by other USG
missions
 NIST issued RFI soliciting private sector input that generated 135
topics, many of which were outside of the energy and defense sectors
 Key focus of the NNMI from its conception was the critical linkage
between Innovation and Manufacturing.
 NIST is the only Federal Agency focused solely on supporting
technological innovation across the board
 NIST support for manufacturing cuts across all NIST programs (Labs, MEP,
AMTech, BPEP, AMNPO)
 Critical mass of technical expertise
 Non regulatory
 Mission is industry focused (not tied to a USG need)
 Works effectively in partnership with industry, academia, and other
organizations.
Thank you
For questions or comments, please contact the
Advanced Manufacturing National Program Office
[email protected]
www.manufacturing.gov
301-975-2830
Unless otherwise labeled, images are courtesy of The White House, the National
Institute of Standards and Technology, and Shutterstock